Apparently there’s a telecom company in Canada worth $1-billion that has been flying under the radar until now – because a surprise bid for Wind Mobile from a company called Fongo Inc. suggests that either that is what Fongo is worth or this is an offer that deserves a healthy dose of skepticism.
The expectation is that Wind Mobile, which is up for sale, will fetch bids in the $500-million to $1-billion range. Fongo, which bills itself as “Canada’s fastest growing mobile telecommunications company” is basically proposing a merger, with Wind’s current owner getting $1 and 49 per cent of Fongo. Do the math. To get to $500-million, that suggests Fongo must be worth $1-billion. To get to $1-billion for Wind, Fongo would have to be worth $2-billion.